The Ministry of Commerce has joined forces with Tak Province's special task force to conduct in-depth inspections of four high-risk groups in Tak. The effort aims to prevent foreigners from using Thai nominees to hold shares, own land, and operate factories, following findings that over 200 foreign shareholders are involved. The goal is to protect Thailand's economy and promote fair competition.
Mr. Poonphong Nainaphakorn, Director-General of the Department of Business Development, revealed that the department is moving forward with proactive measures to inspect high-risk businesses in border areas. Since Tak Province is one of the areas with significant foreign investment, they have collaborated with relevant agencies to inspect four high-risk legal entities operating in real estate, land ownership, and factories processing and purchasing betel nuts. Tak is a strategic area for trade, transportation, and border investment, requiring special vigilance, especially in real estate, land ownership, and businesses related to natural resources, which are restricted for foreigners.
"We have examined key information such as the locations of main offices, shareholder structures, company directors, sources of investment funds, accounting documents, tax payments, and business management to verify true business ownership. We also checked for connections between Thai and foreign shareholders to see if any hold shares on behalf of foreigners. Meanwhile, the Tak Land Office collaborated to verify land and property ownership rights, and the Tak Provincial Industry Office inspected factory operation licenses to support detailed analysis in the next steps."
Additionally, it was found that Tak Province has 3,244 legal entities with a total registered capital of 14,466 million baht. Mae Sot District alone hosts 2,080 entities, accounting for 64% of the total. Analysis of shareholding structures revealed 224 entities where foreigners hold up to 49.99% shares alongside Thais, mostly concentrated in Mae Sot with 203 entities. Meanwhile, 10 entities have foreigners holding 50% or more shares, half of which are also in Mae Sot. However, if Thais are merely nominal shareholders without investment involvement, management authority, or using foreign funds to buy shares, this may constitute a violation of the Foreign Business Act B.E. 2542 (1999).
"The inspection of high-risk businesses in Tak is part of the department's proactive measures to prevent and suppress the use of nominees for foreign-owned businesses, especially in border areas where international trade and investment are rapidly expanding. Cracking down on nominees is not just about enforcing the law but also about maintaining economic fairness, protecting Thai entrepreneurs, and building confidence for long-term Thai investment."